Monetary incentives, as a driving force for human behavior, are the main theme of this book. The primary goals underlying the application of monetary incentive systems in companies are motivating employees to strive for superior productivity in line with the interests of employers, and hiring adequately skilled employees. The first goal refers to incentive effects, the latter to sorting effects. This book introduces important theories and concepts concerning behavior under influence of monetary incentives; it reviews existing economic frameworks and identifies specific contingency variables. Based on an integrative framework of elements influencing incentive and sorting effects, a laboratory experiment is presented including detailed methodological discussion on experimentation and data analysis as well as an extensive presentation of findings and discussion of implications.​

Academic Paper from the year 2018 in the subject Leadership and Human Resource Management - Employee Motivation, grade: 1,3, International University of Applied Sciences Bad Honnef - Bonn, language: English, abstract: If you look for any specific definitions, you will find a huge variation considering the term incentive systems. Weber paraphrases incentive systems as having the aim to encourage employees positively through their performance, with benefits for the organization to reach its stated goals and objectives. In turn, Bartscher identifies incentive systems as the sum of all created working conditions, directly or indirectly to impact the motivation and thus work performance of employees, evoking a certain desired behavior. Coherently, incentive systems aim to control behavior of employees. But they do not only support a certain behavior, such systems additionally are designed to avoid unwanted behavior. Think of any internal regulations which intent to avoid behavior patterns by providing rules and/or punishments. Furthermore, as an example, a low performance might result in a curtailed income and loss of personal reputation.

It's one of the thorniest management problems around: dealing with unmotivated, low-performing employees. It's easy to point the finger of blame at them. But in most companies, it's the reward system, not the workforce, that's causing poor attitudes and performance: many reward systems actually discourage desired behaviors while rewarding the very actions that drive executives crazy. In Reward Systems: Does Yours Deliver? Steve Kerr describes the steps you must take to create an effective reward system: - Clarify what you mean by "performance" -- in ways that help employees understand how they can support what you're trying to accomplish - Devise an effective performance-measurement system that distinguishes between metrics used for control and those used for employees' development - Design a reward system that motivates people to do what you want them to do while also meeting their needs To get the most from employees, you don't need to add headcount, upgrade your IT capabilities, or hire consultants. You do need to develop the right reward system. This book shows you how. From our new Memo to the CEO series -- solutions-focused advice from today's leading practitioners.

Inhaltsangabe:Introduction: 1.1, The challenge of attracting, motivating and retaining Chinese employees: In the last decade, as a result of the advancing globalization, the People s Republic of China (PRC) has become a focus of interest for Western companies. The country is home of 25 % of the world s population and has maintained an economic growth rate of 8 % during the last twenty five years. How can companies position themselves best to profit from this fast-growing economy and prevail against an increasing competition? Along with a massive inflow of foreign investment, Western management practices and philosophies have been brought into China. Thus, every day, foreign managers in subsidiaries of Western companies have to confront decisions about money, benefits and other different forms of incentives that can be used for attracting, motivating and retaining the local Chinese employees to ensure the competitive advantages. The introduction of Western incentive systems in China can be problematic as some Western incentive practices may contradict the norms of Chinese culture and the socialist ideology. Unsurprising that issues of human resource management, particularly in the attraction of employees, the performance motivation and the staff retention, are seen as the main difficulties in the Chinese operations of Western companies. Consequently, the question arises if customary incentive practices that have been proved useful back home can be transplanted to the Chinese subsidiaries of Western companies and if so, how? It is common knowledge that the compensation packages offered by companies to their employees have a great influence on the profitability. The better the foreign managers are able to align decisions about motivational incentives with the challenges presented by the values and the motives of the employees, the likelier it is for the organization to achieve competitive advantages. Thus, especially in the international context the major limitation of contemporary pay systems is the degree to which individual attitudes and preferences are ignored. . 1.2, Conceptual design of Incentive systems for Chinese employees: Objectives and methodology of the thesis: The aim of this thesis results directly from the mentioned problem. On the basis of a literature review that is combined with an analysis of applied incentive systems, it sets out to explore why Western approaches may or may not be applicable in the Chinese context and how [...]

A well-designed and implemented incentive program is an essential tool for building a motivated, highly effective sales force that delivers the results you need. Incentive programs are seductively powerful but complicated instruments. Without careful planning and implementation, they can be too stingy to motivate, too complex to understand, too quick to reward mediocre results, and too difficult to implement. The Complete Guide to Sales Force Incentive Compensation is a practical, accessible, detailed roadmap to building a compensation system that gets it right by creating motivating incentives that produce positive outcomes. Packed with hundreds of real-life examples of what works and what doesn't, this important guide helps you: Understand the value of building an incentive plan that is aligned with your company's goals and culture. Avoid the common trap of overusing incentives to solve too many sales management problems. Measure the effectiveness of your current incentive program, employing easy-to-use tools and metrics for pinpointing its weak spots. Design a compensation plan that attracts and retains successful salespeople, including guidelines for determining the correct pay level, the best salary incentive mix, the proper performance measures, and the right performance payout relationship. Select an incentive compensation plan that works for your organization -- then test the plan before it is launched. Set territory-level goals that are fair and realistic, and avoid overpaying the sales force or demoralizing salespeople by having difficult goals or not fairly assigned. Create and manage sales contests, SPIFFs (Special Performance Incentive for Field Force), and recognition programs that consistently deliver the intended results. Manage a successful transition to a new compensation plan and build efficient administration systems to support your plan. Filled with ready-to-use formulas and assessment tools and a wealth of insights from frontline sales managers and executives, The Complete Guide to Sales Force Incentive Compensation is your hands-on, easy-to-read playbook for crucially important decisions.

To remain viable, let alone competitive, organizations must manage risks. In this book, we explore the concept of operational risk as well as the mechanisms used to diminish the impact and occurrence of risks: the organizational control system. Since the scope and scale of operational risks are unique to each organization, our objective is to explain the theory behind why and how managers respond to the unique combination of threats that challenge their organization. We emphasize employee management and the complexities surrounding the design of management controls, incentive systems in particular, because risks related to employee actions are faced by virtually every organization. Overall, we provide empirically grounded insights into the process of diagnosing operational risks as well as designing, implementing and maintaining a control system that properly manages those risks.

Drawing on two decades of compensation experience, Sal DiFonzo explores how to transition a firm from a traditional discretionary plan to a contemporary structured incentive compensation plan. The issues in this process can be complex, but DiFonzo simplifies them by taking the reader step-by-step through the rationale behind creating a structured incentive compensation plan, each phase of the creation process, and expert strategies for solving the issues that invariably arise with changes to compensation. While examples are drawn from the design and construction industry, firms from all industries seeking to drive strategy, engage employees and achieve success will find this book to be a valuable guide.